Investment Corporation of Dubai (ICD), the investment arm of the Dubai government will repay in full the $4bn three-year tranche of the $6bn conventional and Islamic facilities on 21 August.
It will be repaid from internal sources, mainly from cash dividends from ICD’s subsidiaries, which include property developer Emaar, Dubai Islamic Bank and Emirates National Oil Company (Enoc).
The tranche is made up of $2.5bn conventional financing and $1.5bn Islamic financing. The remaining five-year tranche of $2bn matures on 21 August 2013.
“Today’s announcement demonstrates that as part of the government of Dubai, ICD is committed and able to meet its debt obligations. This substantial repayment is the result of our strong portfolio of diverse and successful companies across Dubai, as well as the underlying strength of our economy,” says Mohammed al-Shaibani, chief executive officer of ICD.